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Fewer Reps: Part II

June 23, 2009

When I agreed to write a blog exclusively for JCKonline I was told I could keep writing as I had been on my own blog and write about whatever I wanted. 

I have tried to be careful to not offend and to be relevant. Still, I hoped to lend another perspective to things, realizing that most of my experience has been with vendors doing business with independent jewelers. Most of what was being written and presented came from people with very different experiences than my own.

Who talks about the difficult things in our industry? Who has the fortitude and perspective to ‘tell it like it is’? Who is willing to talk about an elephant in the room? (The elephants come in a variety these days, as there are several at any one time)

There are very few willing to talk about the elephants. Most (including myself at times) are content to offer little observations, turn clever phrases, or send up suggestions on how one might do things a bit differently to manage through difficult times.

My most recent blog was about there being fewer reps on the road. Let me say it another way: Reps are regularly getting screwed by the companies they represent. The vendor/rep relationship is typically a one-way street with the rep signing an agreement to abide by, yet the vendor ultimately can do whatever it wants in a relationship with a rep.

As a retailer, tell me how many reps who call on your store have been with the same company for longer than 5 years? My guess is not that many and it is becoming fewer and fewer. Why do you think that is?

Granted, there are some reps who are not good at what they do. I’m not talking about those. I’m talking about the ones who get up every day to go out and do what they are supposed to do: call on accounts, write orders, handle customer service issues, train, and prospect new business—usually paying their own expenses.

It is easy to say a rep has jumped from this vendor to that one and you don’t know who they are going to be representing the next time they come through the door. Have you ever asked a rep why they have changed? It is a tough spot to be in, knowing the vendor you are representing is not delivering on its promises or is treating you poorly, unfairly, or having a hard time paying you and you still have to go out and sell for them so you can earn a living and keep food on the table for your family. 

It is a tough situation getting tougher. Most reps are struggling to make a living just like many others these days. Vendors are notorious for asking a prospective rep to provide the list of retailers they do business with and then fully expect that rep to deliver those jewelers to them as new accounts.

It is not that easy or simple. How many times can a jeweler take on a new line just because a rep changes? That has actually caused many jewelers to become overstocked in the wrong things for the wrong reasons. (see my next blog on Monday)

Yes, reps are struggling right now.

  • They are losing money by spending to travel with the HOPE they will get an order somewhere.
  • They are losing money because jewelers aren’t adding stock.
  • They are losing money because the vendors they represent are feeling it too.
  • They are losing money because vendors are reducing commissions.
  • Vendors are cutting territories, firing reps, not paying them, going back on their commitments.

What recourse does a rep have with a vendor? Very little, if any. The rep is at the mercy and whim of the vendor.

Like other things in our industry, that is about to change. Good reps will be finding good vendors who do what they say they will do. Good reps will have vendors sign a contract for the terms of doing business with them just as the vendor has the rep sign theirs.

Good reps will have a forum and representation when things turn sour. They will have recourse. They will no longer be just at the mercy and whim of the vendor they represent. They will have rights exercised in a legal and thoughtful way, but not a vengeful way. And it will happen because it needs to. Things cannot continue to go the way they have.

The conditions of work are hazardous for a rep with all the dangers of robbery and bodily harm. As difficult as the job has become, for many reaping the rewards has become too difficult to justify doing it anymore.  It is a shame, because the industry is losing good people. 

And while the economy is easy to blame, I think it is revealing much for our industry to see, consider, and change.

Posted by Jeffrey Skaret on June 23, 2009 | Comments (10)

June 29, 2009
In response to: Fewer Reps: Part II
Ed from TEDS commented:

Jeff: You are right on. I have worked and build sale forces for some of the largest companies in the industry. As our industry shrinks it is harder and harder to both find the right people for the right company. Many companies hire the rep to get their account base then cast the rep aside get another to get more accounts. many companies fail to realize that jewelers want service, dependable shipment and a product tthey can stand behind. I had a owner tell me to sue him about voiding a contact as the paper is only as good as the people that sign it. There are still many good companies for reps but the playing field has changed drasticly. Gone are the draws. expenses, and other benifits. Companies want the rep to build a territory and account base on the reps time and money. Not to mention stay with the line at all times,spend countless nites on the road. When the bottomline hits its hard to make a living... Guess that's why after 20 years I have gone back to being a retailer. I always have time to look at a reps line. Always have space in my vault for their lines even after closing and get up early to get them on the road.


June 27, 2009
In response to: Fewer Reps: Part II
jlry rep-a-holic commented:

I have been in this business for a long time and have worked for some great companies as a rep. In the past 7-8 years I have seen the business change a lot for reps. I can't understand why companies worth anything would want to hire independent reps---they can't possibly get the attention they need to really be meaningful to a jeweler. The rep carrying 2 or 3 lines (or more) is always going to spend the most time and effort on the line that generates the most sales and revenues. If you are a good vendor with a good product, wouldn't you want to have the full attention of the person you are asking to sell for you and be your voice and face in the market? Building a business with jewelers takes time and companies who think they can cycle from one rep to the next are on a hamster wheel and will never get enough traction to build a significant presence and make a difference for anyone---including themselves. As expensive as it may seem to some, hiring full time reps is really a lot less costly than churning through rep after rep, hoping to keep customers along the way. There is a strong message to the market with stability and consistency. The best companies HIRE the good reps and gice them the tools to help them succeed. They don't contract with whoever is next HOPING they will work out. It has to be a two way street for there to be success in the long term.


June 26, 2009
In response to: Fewer Reps: Part II
dfc50 commented:

Hey Stubby, It sounds like you might want to take your own advise, if you have to chase your commissions then find another company. The point Jeffrey started with is why should we have to "remind" them to pay us, we have already spend our time and money to develope an account. The other issue is we live and work in a territory, sure we can keep changing lines but that constant jumping around does not sit well with our customers, they are now stuck with a line without representation while at the same time you are bringing them another new one.


June 26, 2009
In response to: Fewer Reps: Part II
Stubby Larson (aka) commented:

I don't know what all the hubbub is aboout. I get that it is more expensive to travel and that there isn't as much busness out there, but so what? we reps just have to work harder and if a company isn't foing to pay you---find someone who will. there's lots of jewlers out there and lots of companies looking for reps. Although I am having a hard time getting my commissions. I have to call every month to see when they are going to send the check out. It's like I have to remind them. It would be great to have companies just pay me for what I do--ON TIME!!


June 25, 2009
In response to: Fewer Reps: Part II
Jan Brassem commented:

Why is it that jewelry reps have such a hard time? On the other hand, why are jewelers always looking for reps? The answer is simple: Jewelry has become a commodity -- like selling sand or water. It's hard to differentiate jewelry -- and few try it except saying "We have the best prices and styling in the industry" How many times have you heard that? Those jewelers who can say, "We have new packaging, new concepts, new merchandising concepts", new innovations" better have their doors reinforced. Retailers and consumers will be breaking them down.


June 25, 2009
In response to: Fewer Reps: Part II
Peter Blanchard commented:

Jeffrey, God bless you and the other bloggers. It is about time someone had the nerve to tell what is going on in the life of a rep. Recently, a vendor asked about the high turnover rate by reps. I essentially answered by the same comments above. It is a shame the good reps are "used" and are not treated with dignity and integrity. Our industry needs good professional reps. Why are the vendors killing us off one by one.


June 24, 2009
In response to: Fewer Reps: Part II
dfc50 commented:

Jeffrey, Well said, as a rep. for the last 30yrs I have enjoyed long term partnerships with my companies. I am proud of my reputation in the territory, which is something that is earned. It is very easy for companies to employ and then walk away leaving us facing our customers. I have recently been involved with a change, now the retailer is holding me to an agreement that was made under past employment, my point is they can walk away, but we must face this upset customer we brought to the business. I have always looked at lines that match my customer base, not just a draw check. Thanks.


June 24, 2009
In response to: Fewer Reps: Part II
Jon Parker, DJP Executive Search commented:

A potential 'left handed' benefit of this downturn is, as the retailers are trimming the number of lines they carry, many are taking into consideration the continuity of service from their suppliers. Companies that rotate in & out new reps on an almost 'per visit' basis are a big turn off to retailers.It makes for a good reason to discontinue a line. As we see the sword fall on some good names in the industry, let's hope that the word will get around about the less than honorable firms out there and they will be driven to either play by the rules or get the hell off the playing field.


June 24, 2009
In response to: Fewer Reps: Part II
Jeff Skaret commented:

There are good vendors out there who not only care about their own business, but care about their customers and their reps/employees. A light will be shined on them for all to see as the industry needs to support and reward those who have a broader view and are in business for the long haul---not just a transaction of the moment. Those companies deserve the best reps, the best jeweler clients, and the business that comes with them. On the other hand, vendors who choose not to take a long view of their business, their customers, and their reps; those who do not deliver on their promises and engage in good business practices, will also have a light shined on them for who they are, what they do, and how they conduct business. Our industry must become more transparent and will with the help of a few leading change agents who are thinking new ideas, developing better business models, and implementing fresh approaches to an industry gone stale.


June 23, 2009
In response to: Fewer Reps: Part II
B. Scared to Give Name commented:

Jeff, I have carried lines for some wonderful vendors. by the same token I have carried some lines or side lines from vendors that your blog hits right to the core. I have had to beg for my commissions and even take them to court.I could write a book. I am thankful that you have the GUTS to tell it like it is. Thank You, MIA

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